Will cotton drag wool lower?

摘要

When the wool market rally started in October 2010 there was plenty of interest from commentators in the rising cotton price, and the impact this may have been having on the wool price. Since March 2011 the cotton price has fallen dramatically, but wehaven't heard about it implications. Figure 1 shows the price of Greasy Wool (GW) Futures (21 micron) traded on the Australian Securities Exchange (ASX) and the NYMEX Cotton Futures converted to Australian dollars per kilogram, as traded on the ChicagoMercantile Exchange.